Yes, it can.
The video that demonstrates video recording also demonstrates audio recording.
You know what, if you want to record audio, why wait for OS 4.31? I recommend
VR+. So you can send your recording as voice messages by e-mail in the MP3 format. It is much better than typing when you have quite a lot to say in a given reply.
The 4.3 OS update will let us send the recordings by e-mail, but probably in AMR format only, which can be very inconvenient. I've sent test voice messages to a few friends who have Windows in their computers and about half of them could not play it. I told them they had to let Media Player download some codec (what the other half did), but they still couldn't get it to work for some reason. And as a Linux user, I still haven't been able to play AMR files on my system at all.
And now VR+ also lets you store your recordings online, so they are always accessible from any computer with Internet access. And they can be easily shared too. Not too shabby.
There, I plugged it again.